Treasury has announced that the UK has subscribed to the “Model Intergovernmental Agreement to Improve Tax Compliance and Implement the US Foreign Account Tax Compliance Act (FATCA)”. Under the agreement, financial institutions will report financial account information to their national authorities, which will then proceed to automatic exchange of the information. The agreement aims to lessen the burden FATCA imposes on financial institutions and also ensures a reciprocal approach to anti-tax evasion efforts. Treasury plans to consult with financial institutions on how to implement the agreement and to publish draft implementing legislation by the end of 2012. (Source: G5 FATCA Agreement)